• Minimising Tax

  Complex Tax Query

  Posted by risingcrown on February 27, 2025 at 5:50 pm

  I currently have a fairly complex tax structure I am trying to step out of, with:

  1. a partnership (statutory, ABN, TFN with wife), that was set up to do a property development, and currently holds property in partnership and is also registered for GST. All costs and income is split 50/50, and
  2. Family / Testamentary (discretionary) Trust with ABN and TFN – this has 3 beneficiaries, self, wife and daughter. I am actually looking to fold this trust at completion of 2024 Tax Return, and to replace with a series of private trusts.

  Having purchased Mark’s Tax Minimisation package and reviewed a number of times, I note that although reference is made to partnerships, I note that the forms used are in fact only standard individual tax returns. In typical ATO fashion, the forms that are used for partnerships and trusts are somewhat different and more complex. The way my families complex tax works (or has worked via accountant) is for the partnership and trust tax returns to be completed, and then the flow through net position for profit/loss (or income/expenses) flows through to the personal tax returns. The Partnership is a 50/50 split between myself and my wife, while we shed any gains in the trust to my daughter typically.

  My current thinking on strategy here is to get my normal accountant to complete the complex Partnership and trust returns, then receive the income or loss to the personal level for each of us, and then complete the personal tax returns for myself, my wife and daughter with other work related expenses then added to take each of us under the tax free threshold, and provide the affidavid for each of us. The partnership will I believe need to stay in place until all properties have been sold (we are working on this, have 2 left).

  There is also GST registration on the partnership. This provided great deductions (net payments to us) when we bought land and builds were paid for, however this now has a lengthy period that the GST registration needs to be maintained (around 2010 I believe), or otherwise once all properties have been sold. Every sale results in a sale cost GST payment to the ATO. I have resigned myself to these payments, but I am wondering if there may be a way to get around this as well?

  I would appreciate some feedback on my proposed approach here (ie. viable), or otherwise if there is a simpler approach that can be used that would avoid the need to involve an accountant?

  Thanks in advance for anyone willing to jump in here 🙂

  risingcrown replied 4 months ago 1 Member · 0 Replies
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